CI&T Inc

Good afternoon and thank you for joining us for CIMT 4th Quarter and Full Year 2025 Earnings Call. I am Eduardo Galvão, Director of Investor Relations. Joining me today to discuss our results and strategic milestones are Cesar Ghosn, our Founder and CEO, Bruno Picardi, Founder and President for North America and Europe, and Stanley Rodrigues, our CFO. We're excited to share the details of a landmark year for the company. Before we begin, I would like to remind you that our remarks today will include forward-looking statements. These statements, including our business outlook, are based on the management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. We caution you not to place undue reliance on these forward-looking statements, as they are valid only as of the date when made. Additionally, we'll discuss certain non-GAAP financial measures. We believe these provide a more comprehensive view of our underlining operational performance. For a full reconciliation of these measures to the most directly comparable GAAP metrics, please refer to the tables in our earnings release. Today's session is being recorded and all participants are currently in a listen-only mode. Following our presentation, we'll host a Q&A session. To participate, please submit your question via email to investors at cint.com. The full presentation deck is available on our Investor Relations website, and a replay of this call will be posted shortly after we conclude it. With that, I'm pleased to hand the floor over to our founder and CEO, Cesar Ghosn.

Good day, everyone. It is a privilege to share our results for 2025, our fifth year as a public company. Three years ago, I suggested that while software has been eating the world, AI has fundamentally changed the menu. It's not just another wave, it's a different ocean. In our latest partnership with MIT's Law Management Review, we explore why 95% of organizations still see little measurable returns on their AI investments. The companies that successfully scale AI are not necessarily those with the largest budgets, but those brave enough to redesign their culture. The real constraint on change is the speed of learning. We recently published a paper offering a map for organizations willing to close the gap between AI's potential and real-world performance. The manual has changed. The question is whether organizations have the aptitude to embrace it. AI adoption is no longer discretionary. It's a structural necessity. Yet we see a clear productivity paradox. Organizations that effectively orchestrate people, processes, and technology can unlock productivity gains of up to 20x, compressing innovation cycles from years into weeks. So why do most companies struggle to capture value? Three reasons. First, the tool trap. Treating AI as software instead of transforming the operating model. Second, the learning gap. The real constraint is how fast the workforce learns to work with AI. And third, fragmented governance. Without a unified backbone like CINT flow, initiatives remain isolated experiments. At CINT, we know transformation is never just technology. It's fundamentally human. That is what separates the 5% who scale AI from the 95% who only experiment. Success in this new environment requires more than tools. It requires architecture. CINT has codified decades of leading digital expertise into an AI transformation framework designed to convert AI potential into financial performance. It focuses on three priorities. First, identify high-impact value streams. Second, define measurable business outcomes. Third, align the operating model to scale AI across the enterprise. This is powered by CI&T flow, orchestrating humans, AI agents, data and governance into a single management system. And we have already rescued our workforce around this model, enabling our clients to scale AI with real business impact. Now let's turn to our financial highlights. In the fourth quarter, CIMT delivered record revenue of $134.3 million, representing 19.3% organic growth compared to Q4-24. On a constant current basis, growth was 13.9% year-over-year, exceeding the top end of our guidance range. Our adjusted EBITDA margin was 18.4%. Demonstrating stability and resilience as we continue to scale. Adjusted profit margin reached 14% for the quarter. For the full year 2025, our organic revenue growth at constant currency was 13.2%, positioning CIT as the fastest growing company among our peer group. This is high conviction growth. We continue to invest in the foundations of our future leadership in AI services, our CI&T flow platform, our people, and our global sales engine. Stanley will provide a deeper dive into our financial metrics shortly. This marks our fifth consecutive quarter of double-digit organic growth, reflecting the compounding impact of our strategy. Our performance is driven by the trust of our strategic enterprise clients and our ability to deliver measurable outcomes in complex environments. Over the past three years, we have embedded AI into our core offerings and entering what we call the acceleration phase, where our proprietary IP amplifies the value we deliver. As a result, our AI-powered offerings are expanding our pipeline, increasing engagement quality and growing wallet share within existing accounts. To bring this to life, let's look at a few case studies that demonstrate how we are converting this framework into tangible business outcomes.

Bula, digital native fintech, found a new beat in software delivery. And CI&T flow wasn't background noise. It was wired into the system. What took months collapsed into weeks. Productivity grooves up to 10 times. Gen AI, not as hype, but as infrastructure. Every commit is high in rhythm. Every release on tempo. Business momentum with Bula and CI&T.

Valleys to Coast provides a lifeline for 18,000 residents across the UK. But disconnected systems were limiting their impact, with critical information locked in separate platforms, while families in housing lists waited for their homes. CI&T partnered with Valleys to Coast to change that. We built a unified digital platform that connects housing management and repairs in real time, transforming fragmented data into a single, trusted source of truth. This isn't just about technology, it's about human outcomes. From syncing customers' details to accelerating property turnarounds, we're ensuring repairs happen on time and families get their keys faster. With less manual work and clearer data, Valleys to Coast can now reinvest where it matters most, supporting the residents and communities at the heart of its mission. That's the power of connected data. That's C-I-N-T.

Working with CINT, we've improved the lives of real people. We now put the right information in front of our teams instantly, accelerating poverty turnarounds and reinvesting our time back into the community.

New York.

January, NRF 2026, retail's biggest stage. On stage, from production to customer experience, the power of agentic ecosystems.

Melissa Minko of CINT with Tony D'Onofrio of Sensormatic and TD Insights and Taniola Adedipe of Old Navy.

Real conversations, real execution. CINT and AI connecting operations to demand, from production to experience. End-to-end systems, connected enterprise. No fluff, just proof.

We are at the top, not by narrative, by delivery. CINT is a leader in the ISG 2025 report. Recognized as a leader in enterprise data modernization and AI services in the ISG provider lens, AWS Ecosystem Partners 2025. A global benchmark for evaluating technology providers. Daily Excellence. Industry Recognition.

This is a moment to look back, not with nostalgia, but with numbers that speak in bold. The CI&T and AWS partnership has evolved year after year. Today, more than 60% of our portfolio runs on AWS. In Latin America alone, the business grew 10 times year over year. We're one of just 19 partners worldwide selected for the AWS Generative AI Partner Innovation Alliance, a global initiative co-creating the next generation of Gen AI solutions. BASF, EDUCUS, C6 Bank, not just logos, proof points. CI&T accelerates AWS. AWS amplifies CI&T.

The results we are seeing with our clients, collapsing months into weeks and achieving 10x productivity gains, are a testament of what's possible when AI becomes a core capability, rather than just hype. To explain how we are crystallizing this success across our global footprint, I will invite Bruno to discuss our evolving delivery model and the strategic offerings driving these outcomes.

Thank you, Cesar. It's a pleasure to be here to discuss the evolution of our delivery model and the strength of our global offerings. We finished 2025 with a global team of 8,000 CITers, averaging 6,400 AI tech professionals over the period, a 14% increase from 2024. These are not just developers. They are consultants, designers, and engineers who empower our clients by blending strategy, customer-centric design, and advanced AI engineering. As Cesar touched upon, people are the heart of an AI-first transformation. Our framework recognizes that this journey is multidimensional. You cannot simply install AI, you must advance people, processes, and technology simultaneously. We believe that breakthroughs in technology can only be sustained if they move in lockstep with organizational maturity. As the service industry evolves into a hybrid of IP and talent, we are empowering our people to be architects of solutions and platforms. Through CIT flow, our teams can create, share, and reuse autonomous agencies across the entire enterprise. By integrating lean principles and robust governance with our talent and technology, we are enabling our clients to move past simple efficiency gains and toward a complete reinvention of their business models. Now let's see how we're fundamentally redefining the unit economics of software production. CINT is capturing a massive performance arbitrage. By staying relentlessly ahead of the curve, the productivity gap between CINT and non-AI or low-performing vendors is widening into a significant competitive moat. We are navigating this through a staved evolution. Today, we are in the AI augmented phase. With our AI native talent, we are already realizing 2x gains in individual productivity across the board. In more mature engagements, we move to AI coordinated efficiency. By integrating autonomous agencies into the workflow, we achieve 5x gains by collapsing lead times across the entire product stream. And we're continuously working towards a 20x performance increase through AI orchestrated reinvention, where AI coordinates the entire journey from concept to market. This evolution of our delivery engine demands a corresponding evolution in our business model. To capture the value of this 20x potential, we are gradually transitioning our clients to modern engagement models. We are moving beyond time and materials toward fixed-price, outcome-based, and consumption-based contracts. This allows us to decouple our revenue from headcount and participate directly in the value we create. We aren't just watching the industry change, we are architecting the new standard. To see the technology making this 20X leap a reality today, let's look at our newest offering, the Agentech S-TLC. Historically, software development was a linear, human-dependent relay race. Our agentic SDLC breaks this model by deploying an ecosystem of autonomous AI agents that mirror key development roles. These agents orchestrate the process to eliminate systemic waste, such as waiting times and hand-off errors, while our senior engineers provide strategic guardrails to ensure every output is enterprise-ready. The backbone of this system is the enterprise knowledge base. This 360-degree data repository enables agents to continuously evolve, making decisions based on each client's specific context. This coordination of agentic speed and human strategic supervision is what unlocks unprecedented performance levels. We partner with clients to map and reinvent their entire SDLC, migrating their legacy processes into our agentic platform. We are already seeing the financial and operational impact of this shift. With a life-size client, we've secured over 8x productivity gains. We've seen development cycles that previously took 8.5 days collapse to just half a day. With Bula, as seen in our client case video, What used to take months is now delivering in weeks. They achieved up to 10x productivity increase through end-to-end automation across coding, documentation, and testing. A Gentic SDLC is a structural engine that allows us to deliver superior value at a lower cost to serve. By compressing product creation cycles from months to days, we are fundamentally shifting our business model. We are moving from a labor-intensive delivery model to an IP-led model where our margins can expand significantly without traditional constraints of linear headcount growth. Our momentum and competitive edge are being validated by the world's leading ecosystems. 2025 has been a landmark year of recognition. CIT earned the AWS GeneAi Services Competence Seal and was selected as one of only 19 partners worldwide in the AWS GeneAi Partner Innovation Alliance, giving us early access to emerging technologies that keep our clients at the forefront of innovation. Our data expertise was also highlighted by Databricks, which recognized CIT as LATTA Enterprise Data Warehouse Partner of the Year for 2025. underscoring our ability to modernize legacy data foundations into high-value assets for agentic orchestration. Our strategic positioning is consistently validated by the industry's most respected independent analysts, including Forrester, Gartner, Everest, and ISG. Most notably, Forrester has named CIT a leader in modern application development services for 2025. And the ISG provider Lance Reports recognizes us as a leader in enterprise data modernization and AI services, while Gartner Peer Insights rates us as a strong performer in customer software development services. Together, these accolades show that CIT is not simply following market trends, but helping define the new gold standard for our industry. Now, I invite Stanley to guide us through our financial performance.

Thank you, Bruno, and good afternoon, everyone. It's a pleasure to provide more detail on what has been a year of exceptional execution and financial discipline for CINT. In the fourth quarter of 2025, we delivered a robust revenue of $134.3 million, representing a 19.3% increase on a reported basis, fully organic. On a constant currency basis, we grew 13.9% year-over-year. This performance is significant, as Cesar mentioned. It marks our fifth consecutive quarter of double-digit organic growth. In a volatile macroeconomic environment, this consistency is a clear differentiator, providing the resilience of our business model. For the full year 2025, total revenue reached 489.7 million, an 11.5% increase over 2024, or 13.2% on a constant currency basis. By balancing high-velocity top-line expansion with stable margins, we are successfully compounding value for our shareholders. The narrative for 2025 is defined by the quality and composition of our growth. Our performance is anchored by our two most significant markets. Latin America delivered an outstanding 26.8% revenue growth for the full year, fueled by a rapid acceleration in digital and AI modernization across the region. In North America, we maintained a solid and steady trajectory with revenue growing 9.2% year-over-year, reflecting our maturing presence in the world's most competitive tech market. From a vertical perspective, we continue to see strong demand across our core sectors, specifically in financial services and retail and consumer goods verticals, where the demand for measurable AI-driven efficiency is reshaping how technology budgets are allocated. I want to double-click on the quality of our client partnerships. At CI&T, our objective is to be the partner of choice for high-impact strategic transformations. The results of this approach are clear. Revenue from our top 10 clients grew 16.5% year over year in 2025. It is important to note that each of these top 10 accounts now generates a minimum of $10 million in annual revenue. This outsized double-digit growth within our most deeply embedded accounts is a powerful market sign-off. It proves that even in our largest partnerships, we are finding new high-value opportunities to drive impact through the agentic SDLC and AI-driven reinvention. Beyond our existing base, we are equally encouraged by our new client onboarding. Throughout 2025, we saw a consistently strong pipeline and robust conversion rates. This balanced portfolio of regions, loyal top-tier clients, and diverse industries provides us with a very solid foundation for the year ahead. Now let's discuss our profitability and cash flow. For the fourth quarter, adjusted EBITDA reached 24.8 million, an 11.6% increase year-over-year, resulting in an adjusted EBITDA margin of 18.4%. The margin decline was driven by two specific headwinds. the unfavorable foreign exchange environment and the resumption of payroll taxes in Brazil. In addition, we have been deliberately investing upfront in our AI platform, our workforce reskilling and global sales initiatives as a strategic choice to accelerate our top-line growth. For the full year 2025, adjusted EBITDA was 89.4 million, up 9.1% from 2024. This resulted in a full year margin of 18.3%. In 2025, cash generated from operating activities reached 81.2 million, representing a remarkable 90.8% cash conversion rate from adjusted EBITDA. Our free cash flow totaled 45.8 million, which represents a cash conversion rate of 91.3% from adjusted profit. This level of conversion is a testament to our operational efficiency and disciplined working capital management. It provides us with significant balance sheet flexibility to continue funding our strategic pivot toward an AI agent tech model while maintaining a strong de-risked financial position. Turning to the next slide, let's look at how our top line momentum translated into bottom line results. For the fourth quarter, adjusted net profit reached 18.8 million, a 41.8% increase year over year. This pushed our adjusted net profit margin to 14%. Consequently, our adjusted diluted earnings per share rose to $0.14, marking a 48% increase from the previous year. For the full year 2025, adjusted profit was $51.9 million, up 16.9% compared to 2024, with margins expanding 50 basis points to 10.6%. Our full-year adjusted diluted earnings per share grew to 39 cents, a 20% increase over the prior year. This earnings outperformance was driven by two key factors. First, our disciplined management of SG&A expenses. Second, the strategic execution of our share repurchase program. By reducing the share count at what we believe are highly attractive valuation levels, we have successfully amplified the value delivered to our shareholders. In summary, 2025 was a year of consistent high-quality execution. We delivered five consecutive quarters of double-digit organic growth, maintained a resilient margin profile, and achieved elite-level cash conversion. Combined with our active buyback program, CINT is demonstrating its ability to be both a high-growth AI leader and a disciplined compounder of shareholder value. We entered 2026 with a stronger balance sheet, a more efficient delivery model, and a clear path to continued outperformance. With that, I would like to invite Cesar back to share our business outlook for 2026. Thank you.

Thank you, Stanley. Our 2026 outlook reflects our commitment to sustaining growth while continuing to invest in the shift towards an AI-native operating model. For the first quarter of 2026, we expect a revenue of at least $134.7 million, representing 21.5% growth year-over-year, or 14.3% at constant currency. For the full year 2026, we expect revenue in the range of $548.4 million to $568 million, implying organic growth of 12% to 16% year-over-year, so with a midpoint of 14%. This outlook includes a favorable FX tailwind of approximately 300 basis points. and we expect our adjusted down margin to be in the range of 17% to 19%. Before we open for questions, I want to thank all CITers around the world. Your commitment to innovation, continuous learning, and delivering exceptional value to our clients makes these results possible. With that, we are ready to begin the Q&A session. Thank you.

The future of business is tech. The future of tech is business. We solve it. Tech Integrated Business Solutions. CIMT.

Okay, we'll now begin the Q&A session. I'll announce each participant's name. Once you hear her name, please unmute your line and ask her question. Then, when you're done, please mute your line. The first question comes from Abby from JP Morgan. Abby, please go ahead.

Hi, nice to see you guys. This is Abby on for me. Thanks for taking my question. So I was wondering if you could walk us through the guide and some of your assumptions. 1Q looks pretty strong, but on a constant currency organic basis, it seems like it's going to decel from this year. So can you just walk us through that?

Sure. Thanks, Abby. Great to see you. Well, I think after five years, On second of double-digit growth, we were able to really forecast it. We end the year with a very strong exit rate, so we are now able to forecast a very strong Q1. And then project continue almost in the same pace. Our guidance assumes that we will have an average FX rate of 5.3%. in terms of a bruising rise to the US dollars in average, along the year. If we look at the lower end of our guidance, basically it reflects macro uncertainty. And the high end, where we want to be, reflects our current strong commercial pipeline, 30% higher now than the same period last year. and keeping the very good level of conversion certainly driven by AI demand and our differentiation we achieve for our main offerings. We are seeing Brazil and the U.S. basically expanding in a good pace. I think this last Q4 we could see our main regions all expanding and also our five main verticals expanding sequentially. So I think it's a good start, of course, a lot of things to do.

but i think we were able to to grind what i believe is the fastest uh growing continue to be changing continue to be the fastest growing company among our peer group yeah that's great um and just as a follow-up are you guys seeing any impacts from uh geopolitical uncertainty so far um in one queue

So far, no. Even Europe is a very good start for the strong, solid start for the year, and Brazil and the U.S., we are also expanding.

Thanks. Great job, guys.

Thank you. Thank you, Abby. Our next question comes from Gustavo Farias from UBS. Hi, Gustavo. I think we have Leo now, right? So the next question comes from Leonardo Sintra from Itaú. Leo, please go ahead.

Hi, everyone. Thank you for taking my questions. Just want to check about your expectation regarding the performance from the top one client and your top ten client throughout 2026. And if you could give us a little bit more breakdown about the flow adoption between the different sectors. Thank you.

Sure, thank you, Mel. I will start with the segments. Q4 was a very good year for our five main verticals. We expanded almost 14% in life-sizing as the most larger expansion, but even financial services will have been We sequentially expand more than 3%. So we continue to see demand around all this for our five main verticals. And regarding the top clients, I think also Q4 was basically, in average, we expanded. 21% year-over-year in our top 10 clients. Excluding top one, we expend 17% year-over-year. And if you look at top 10, it's 18% year-over-year. So in average... all the cohorts are expanding, and so we continue to see our strategy working around our top clients and also the new clients we lent last year. So, sequentially, we could grow among eight of our top ten clients from Q3 to Q4, so very solid, and We see our top one continuing to expand, but for sure less accelerated. It's less here.

I think the other one was about the flow adoption, right? So we don't see a lot of difference across verticals in AI adoption. It's pretty much, you know, our team's adoption at this point continues very high, close to 100%. Just really a few lagger clients that don't want... to AI to be used in their environments, which, again, is very minimal. So at this point, it's a full-blown utilization. As I mentioned in my slides, it's well over the assistant phase and really moving into restructuring processes and workflows to actually deliver a way bigger impact at this point already.

Very clear. Thank you, guys.

Thank you, Leonardo. Our next question comes from Brian Bergen from TD Cowen. Hi, Brian.

Hey, guys. Good to see you. On the AI energetic activity and the workloads you're working on there, I'm curious if you can give us a sense of the mix of kind of new work that is the modernized version of what you've always done as far as high value, custom build solutions, but now leveraging Gen AI and flow platform versus newer areas for you like agentic-led managed services where you may be displacing some of the larger legacy vendors. I'm just trying to ask this because I'm trying to understand the different avenues of demand and how clients are thinking about this right now.

Sure. Thanks, Brian, for the question. In general terms, we kind of categorize the demand in two groups. The first one is, as you mentioned, we continue to see a big wave of foundational spending. So, it means large-scale projects regarding the great legacy technology application or data foundation and really accelerating the cloud migration. This is foundational moves if you want to explore the full potential of the AI-driven world. And the second, what I believe is a big trend now, is direct AI investment. We see now a relevant budget allocation for AI-specific solutions and then we are talking about hyper-efficiency around the software development lifecycle. We see a lot of demand regarding customer experience journeys. Now reinvented with AI in Brazil is around WhatsApp, but globally it evolves for commercial commerce, conversational commerce, and so on. We also see broad problems regarding AI force transformation. That means look at the end-to-end business model and structure of our clients and find the best way to really build a strong AI strategy around specific value streams or business units. And finally, we also see a growing number of what we call use case around gene AI, meaning optimizing everything that is labor-intensive or data-intensive business process now can be redesigned and reshaped with the new AI capabilities. So basically two groups, foundational demand and then what we call AI direct investment.

Okay, and if I could ask a follow-up on margin. So can you comment on maybe the drivers of adjusted EBITDA margin going forward? You know, you've had ramped workforce investments and flow investments in 2025. It looks like that will persist based on the guide for 2026. I'm curious how you envision this ultimately playing out, where a crossover point may be for the potential to start recovering margin, particularly gross margin, as you benefit from all these investments and the productivity yourselves.

Brian, thanks for the question. With regard to gross margin, you're right. So 2025, we saw a playing at the gross margin. We saw bold investments towards people, meaning investing in the preparation ahead of the strong pipeline we experienced throughout the whole year. We also had in that zone investments in AI itself, I mean, towards the platform flow. We also had some headwinds in terms of FX, especially towards the end of the year. We had like 8% of valuation of the Real in the Q4 itself. If you combine that with investments in sales and efficiency and operating leverage that we saw in 2025, we get to this 18.3% EBITDA. If we go to 2026, the guidance we provide pretty much talks to that, the midpoint talks to that 2025 number. And what that means is we are continuing in that, I would say, winning AI strategy. meaning that we are investing in our AI platform. We are preparing teams ahead of the opportunities that we saw, we see in the pipeline. We have a strong pipeline, usually 30%. bigger than the same period previous year so we and this is allowing us uh brian to expand the the wallet share which is very good uh and also acquire new clients so We are repeating, of course, we are leading in the sector, and that's the winning strategy. We will continue to see, and that's why we're guiding that range of EBITDA. We want to continue to do that formula, let's say.

Okay. Thank you.

Thank you. Thank you, Brian. Next question comes from Luke Morrison from Canaccord. Hey, Luke. Go ahead.

Hey, guys. Good to see you. Excellent results. Thanks for taking the question. So maybe I'll just start dovetailing somewhat off of Brian's question, just thinking about, like, the productivity improvements you're seeing with flow. As you think over the long term, like, over a multiyear period, like, how do you think about the relationship between headcount growth and revenue growth over time? And are you expecting revenue per employee to rise as you sort of roll out these new pricing models and you see more productivity from your existing headcount? Or are you thinking more, you know, this growth phase still requires adding people at roughly the same rate as you're growing?

Thanks, Luke. I can start here. Bruno, you can add if you want. Well, for sure, we see the rise of AI and the eugenics solution will provoke an inevitable space for an evolution in the commercial and pricing models in our industry. So, in terms of US mid-term, yeah, we see the future of our industry evolving from basically the time material model to value-based pricing models, more closely tying the business to business outcomes. and this is for sure an opportunity to gradually monetize the intellectual property embedded now in everything we do and also different uh experiment different business models for the agenda architecture that are for sure will dominate the future of of i.t investment so Proactively, we are introducing all these different approaches with our clients, and we have, I would say, encouraged early results. But, as I mentioned, we see it as a mid-term opportunity. It will translate our superior performance into margin and scalability, and, of course, giving our clients more options to to better connect outcomes to the invest they are doing. So I think it will be gradually but inevitable change in our industry.

Yeah, makes sense. Very helpful. And then maybe just to double-click on sort of the new pricing model evolution, you know, you talked about experimenting with consumption-based subscription models for Flow Access at your analyst day last October. Maybe just update us on how those conversations are going with clients. Are you seeing a willingness to pay for Flow as a standalone platform, or is that still primarily a differentiator that's helping you win business today?

Bruno, want to answer that?

So, primarily is a differentiator look. So, of course, with clients, when they see the type of performance, they want to share in the success. I want that for myself, but we're not leading with that. We're not a... not trying to push a product. So they're just seeing what our teams can do and what the performance of those teams are, and they go, actually, how are you doing this? And then we actually get another sort of engagement, which is some more transformational engagement, which is, okay, let us teach you how to achieve that type of performance, which includes, yes, includes a different tool set and different usage. of not only our agents, but also the third-party tools available on the market. But again, that's more on the back track of they seeing it a different performance because to all the public reports that you can read everywhere, it's a lot of frustration there on the utilization and kind of transforming AI into actually real value. When you say you can do five acts, it's very usually faced with a lot of skepticism. So our approach is more of a show than tell, because this is what actually we're doing and this is what we're achieving. And then we kind of can break that big wall of skepticism and have those conversations. So that's been the approach.

Okay, our next question comes from Cesar Medina from Morgan Stanley. Hi, Medina.

Hey, thanks for taking my question. I guess you both, Bruno and Cesar, sort of just answered one of them, but let me ask you in a different way. When you're thinking of the... The changes in trends, Cesar mentioned, for instance, that, you know, your main customer will continue to grow robust but should be a slowdown relative to 2035. Can you maybe walk us through the changes in trend that you're seeing between projects that are sort of more discretionary spending versus other projects that are sort of take-out cost and things like that? So that's first part of the question. The second question, exactly the same thing as changes in trend, but instead of by client, by region. What are you seeing sort of U.S., Brazil, and then new markets?

Sure. Thank you, Medina, for our questions. We see, again, we see both trends, foundational investments, now with a very better return on investment equation regarding legacy and data modernization. We continue to capture. These are very large scale investments. endeavors to modernize decades of technical debt in our clients. And then we are seeing also the strength of direct AI investments with different shapes and colors. But in average, we see our engagements basically accommodating multi-year contract with more spot I would say, meaningful difference in terms of the duration of our engagements or the ticket size in both kind of demand. Regarding In the markets US and Brazil, we are very confident and very well established in terms of land and expense, so acquiring new customers in these markets and continue to expand to increase our wallet share among our global clients. And we see our new markets as more exploratory. Europe, Asia, that now represent 10%. We have an amazing Q4 for these regions, but it's even harder to predict. But we see a solid forecast for our main markets in North America and Latin America.

And when you see your pipeline, last year you had a ramp-up of very large projects for international, like non-Brazilian customers. When you think of this pipeline, do you have similar opportunities this year, 2026, on that front? Yes. Okay.

Yes, and part of when we say... Expand is a very important game because these large companies, we need to move from one geography to another, from one business unit to another. So it's a long-term strategy to continue to increase our wallet share year over year, quarter over quarter, as we establish our reputation. What playing favors of our approach is, with flow and our discipline of metrics and so when we can clearly demonstrate the kind of results we are achieving and this is the natural response from our clients is giving us more opportunities to expand along the way. So I think this is basically the expanded strategy And as you know, we have very, very large companies operating around the world. So it's a fertile soil for long-term expansion. Yes, thank you. Thank you, Medina.

Thank you, Medina. Our next question comes from Gustavo Farias from UBS. Hi, Gustavo. Please go ahead. Can't hear you, Gustavo. Can you hear me? Yes, now we can.

So my question is regarding the alternative billing model. So when you go from time and materials toward fixed or even outcome-based, there's probably a higher risk-reward profile. So if you could comment on which of those alternative models are getting more traction and what are you experiencing in terms of the effective margin upside gains in each of them, that would be very helpful. Thank you.

Sure, Gustavo, thank you. We are experimenting really seven different models now and basically it's a blend, it's a hybrid moment. where we combine time material with price per unit that is basically tripled with price per consumption using our agent computing unit for the SAS agent solutions and outcome base. I think it's too early, but of course all these models, they have potentially a better margin if you know how to execute them. Again, we are very confident in our ability to execute these engagements that allow us to be very confident in the predictability of these new models. And also, it's part of the evolution of services become an IP based game. Flow is not only our management system for AI, but it's also the stack where we are building our vertical solutions, all the IP that will tackle specific vertical opportunities So it's part of this evolution of game. But for sure, all these models potentially can increase not only our margins, but our scalability in terms of headcounts. But it will be, as I mentioned, an incremental midterm game, not something that's going to happen from...

friday to monday and but we are very very confident in our ability to execute great thanks uh just to follow up if i may so just to confirm uh there's nothing uh from this potential website like you said uh invited embedded in the in this year's uh guidance right uh for margins

Yeah, for 2026, we are guiding the natural evolution of our pricing models, but considering that we believe that our clients will be, let's say, conservative in terms of they are willing to test different models, but it will take a few years to really see this as a relevant model. part of our P&L, but it is, as I mentioned, it's inevitable, not only for C&T, but for the whole industry. It's just a transition that will take a while, especially because of the cohort of our clients, these large companies. They tend to move, but in a very consistent and careful way.

All right. Thank you very much, guys.

Thank you, Gustavo.

Thank you, Gustavo. That concludes our Q&A session. Thank you all for attending our event today. I will now invite Cesar to proceed with his closing remarks. Cesar.

Sure. Thank you, Galvão. Thanks, Bruno, Stanley, for joining me. Thank you all for joining us today. And, of course, a special thank you to all CINTers around the world. Congratulations on another record quarter. Let's keep pushing. And a special thank you also for our clients to choosing CINT as a partner for this exciting new AI-driven innovation area. Stay well. See you soon.